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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 6
Allocating Joint Costs Using the Constant Gross Margin Method
Refer to Cornerstone Exercise 7.10.
Required:
1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.
2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method.
3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products?
Refer to Cornerstone Exercise 7.10.
Required:
1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.
2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method.
3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products?
Explanation
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1. The total revenue, total costs and to...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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